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    • Karenhoward23
    • By Karenhoward23 14th Jan 20, 5:06 PM
    • 4Posts
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    Karenhoward23
    Car finance issue following family death
    • #1
    • 14th Jan 20, 5:06 PM
    Car finance issue following family death 14th Jan 20 at 5:06 PM
    Hello
    Can anyone please advise / help.
    My step-father died unexpectedly on 10/12/19. He had taken out finance a few weeks previously and actually died on the last day of the ďcooling offĒ period for the finance. We let the dealership / finance company know the very next day (as obviously was not the first thing on our mind the day he died) and have been given very little compassion / help.
    They have given 4 options - 1. I take over the agreement, 2. give it to someone else to take over the agreement, 3. Hand the car back and they sell it at auction and I pay the difference between what they get and the finance 4. Pay 50% of the agreement £7700
    Iím upset because surely the fact he died within the cooling off period should be taken into account?
    Please can any advise as I donít drive and donít have anyone who wants to take over the agreement into do I have the money needed to hand the car back / pay for it.
    Would be grateful for any advice..
Page 1
    • BoGoF
    • By BoGoF 14th Jan 20, 5:20 PM
    • 5,954 Posts
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    BoGoF
    • #2
    • 14th Jan 20, 5:20 PM
    • #2
    • 14th Jan 20, 5:20 PM
    The cooling off period relates only to the finance, not to the actual purchase of the car. So even if the finance was cancelled in the cooling off period then you would still have to pay the garage for the car.

    Also you say the finance was taken out 'a few weeks' before his passing? The cooling off period is 14 days.
    • BoGoF
    • By BoGoF 14th Jan 20, 5:47 PM
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    BoGoF
    • #3
    • 14th Jan 20, 5:47 PM
    • #3
    • 14th Jan 20, 5:47 PM
    Sorry, never got a chance to finish that post there......any debt will be a debt of the estate and if there are no assets then they will get nothing. Under no circumstances make any payments from your own money, it is not, and never will be, your debt.
    • xylophone
    • By xylophone 14th Jan 20, 6:24 PM
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    xylophone
    • #4
    • 14th Jan 20, 6:24 PM
    • #4
    • 14th Jan 20, 6:24 PM
    It is a debt of your stepfather's estate not your debt.

    Is the estate solvent?

    Did he leave a will?
    • Karenhoward23
    • By Karenhoward23 14th Jan 20, 9:10 PM
    • 4 Posts
    • 1 Thanks
    Karenhoward23
    • #5
    • 14th Jan 20, 9:10 PM
    • #5
    • 14th Jan 20, 9:10 PM
    Thank you both for replying - when I say it was taken out a few weeks earlier .. he died on day 14 after taking out the finance on the car ..
    the estate was not solvent
    he did leave a will - I am the Executor (which I wasnít aware of until this happened) and everything has been left to my Mum who doesnít drive and had no control / knowledge of money / bills as my Step-Father always handled it. They have no savings and a very small house with no mortgage. To pay the finance off would mean my Mul losing her home
    • McKneff
    • By McKneff 14th Jan 20, 9:38 PM
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    McKneff
    • #6
    • 14th Jan 20, 9:38 PM
    • #6
    • 14th Jan 20, 9:38 PM
    She would still have a car she could sell.

    No reason for her to lose her home.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
    • Karenhoward23
    • By Karenhoward23 14th Jan 20, 10:11 PM
    • 4 Posts
    • 1 Thanks
    Karenhoward23
    • #7
    • 14th Jan 20, 10:11 PM
    • #7
    • 14th Jan 20, 10:11 PM
    Iíve already looked at selling the car and we would get around £8995.. the finance including interest is close to £16k. If paid now they would settle at £12k.. My Mum is in her late 70ís with absolutely no savings at all.
    Thank you for replying anyway, I appreciate it
    • Keep pedalling
    • By Keep pedalling 14th Jan 20, 10:27 PM
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    Keep pedalling
    • #8
    • 14th Jan 20, 10:27 PM
    • #8
    • 14th Jan 20, 10:27 PM
    Iíve already looked at selling the car and we would get around £8995.. the finance including interest is close to £16k. If paid now they would settle at £12k.. My Mum is in her late 70ís with absolutely no savings at all.
    Thank you for replying anyway, I appreciate it
    Originally posted by Karenhoward23
    If the house was owned jointly as joint tenants, it passes to her automatically and the estate is effectively insolvent. The first call on his sole assets would be funeral costs, and what is left will go towards his unsecured car loan.

    It is very unwise to attempt to administer such an estate as getting it wrong can leave the executor liable for estate debts.

    If that is the case then write to the finance company explaining that the estate is insolvent and no one is administering the estate.

    If on the other hand he owned the house outright, then his estate is solvent and somehow the cash needs to be raised to pay his dept.
    • Keep pedalling
    • By Keep pedalling 15th Jan 20, 12:00 AM
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    Keep pedalling
    • #9
    • 15th Jan 20, 12:00 AM
    • #9
    • 15th Jan 20, 12:00 AM
    It sounds like the settlement figures they are quoting are very dodgy, the sound like penalty charges foe settle a dept early they should not be applied in the of the death of the person who took out the loan.
    • 74jax
    • By 74jax 15th Jan 20, 7:41 AM
    • 5,311 Posts
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    74jax
    Was the house owned jointly as joint tenants?
    Did he have a bank account with money in it or was it a joint account ?
    Have you had the funeral and was there money for that? Is that paid now?

    I would step away. No funds in the estate to pay any debts. Its the estate that pays, not you. If there are no funds then you can not pay.

    We need the answers to the above though before we can really advise any more.
    Forty and fabulous, well that's what my cards say....
    • Karenhoward23
    • By Karenhoward23 15th Jan 20, 8:18 AM
    • 4 Posts
    • 1 Thanks
    Karenhoward23
    Iíve never used this forum before so sorry Iím not directly replying to everyone under your message (if you can that is)
    The house and bank accounts were in their joint names but he has now been taken off when we called to inform everyone of his death. Bank accounts / the house etc are now only in Mums name..
    The funeral was last Monday and it hasnít been paid for yet. As there was no savings or funeral plan in place, we as a family are trying to pay it and the funeral directors have been very supportive in not chasing immediate payment and are allowing us to pay in instalments.
    As for the settlement figure I donít know what he was thinking when he agreed to buy the car as the APR is 16.9%. He only put a £1k deposit down and also agreed GAP insurance. I canít see an early settlement penalty, sadly itís more the ridiculous APR etc. The dealer have wiped their hands of it (I hoped because we rang the day after they would be sympathetic and help) and the finance also werenít helpful and just sent me a letter with the 4 options.
    Thank you all again - Iím massively grateful
    • BoGoF
    • By BoGoF 15th Jan 20, 8:51 AM
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    BoGoF
    Tell them that you will be using option 5 - returning the car and that they can seek any funds from the estate. However as there are no assets then there is nothing to give them and the debt will have to be written off.
    • Keep pedalling
    • By Keep pedalling 15th Jan 20, 8:53 AM
    • 7,390 Posts
    • 8,633 Thanks
    Keep pedalling
    Iíve never used this forum before so sorry Iím not directly replying to everyone under your message (if you can that is)
    The house and bank accounts were in their joint names but he has now been taken off when we called to inform everyone of his death. Bank accounts / the house etc are now only in Mums name..
    The funeral was last Monday and it hasnít been paid for yet. As there was no savings or funeral plan in place, we as a family are trying to pay it and the funeral directors have been very supportive in not chasing immediate payment and are allowing us to pay in instalments.
    As for the settlement figure I donít know what he was thinking when he agreed to buy the car as the APR is 16.9%. He only put a £1k deposit down and also agreed GAP insurance. I canít see an early settlement penalty, sadly itís more the ridiculous APR etc. The dealer have wiped their hands of it (I hoped because we rang the day after they would be sympathetic and help) and the finance also werenít helpful and just sent me a letter with the 4 options.
    Thank you all again - Iím massively grateful
    Originally posted by Karenhoward23
    Thanks for the clarification. If it had not already been done make sure any payments to do with this loan from what was their joint account is stopped, you mother is not liable for them.

    That interest rate is high, but it should not add £3000 to the dept owed. Regardless of how much the dept is there is nothing in his estate to pay it. The safest option is to write to them informing them that the estate is insolvent, and that there is no one administering the estate. Tell them that they are welcome to repossess the car as final settlement.

    Technically you could sell the car, pay the funeral costs, and pass whatís left to his creditors. This would mean you have to administer the estate which is something you should not do without taking legal advice.
    • Malthusian
    • By Malthusian 15th Jan 20, 10:00 AM
    • 7,408 Posts
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    Malthusian
    Technically you could sell the car, pay the funeral costs, and pass whatís left to his creditors. This would mean you have to administer the estate which is something you should not do without taking legal advice.
    Originally posted by Keep pedalling
    The costs of paying a solicitor to adminster the estate would however take priority over the debt. So if the sale of the car would cover taking legal advice after paying for the funeral costs it could be worthwhile.

    The OP can arrange an introductory meeting with a solicitor and ask them whether it's feasible without risking intermeddling.

    The OP should check whether the stepfather had any pensions or insurance policies if she hasn't already. Even a small pension from a brief period of employment makes a difference in this situation.
    • McKneff
    • By McKneff 16th Jan 20, 4:47 PM
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    McKneff
    You still havent answered the question about how the house was owned or have i missed that
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
    • Malthusian
    • By Malthusian 16th Jan 20, 5:44 PM
    • 7,408 Posts
    • 11,880 Thanks
    Malthusian
    You missed it.

    The house and bank accounts were in their joint names but he has now been taken off when we called to inform everyone of his death. Bank accounts / the house etc are now only in Mums name..
    I.e. joint tenancy, now sole name after Dad's death.
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